Hottest Oil & Natural Gas Plays.
Caddo Minerals invests in oil and gas properties all over the country. While Caddo is not solely focused on the “hot” plays or fields, these areas do make up a significant portion of our investment portfolio.
The following plays are the ones in which Caddo has the most interest:
Eagle Ford Shale (South Texas)
Caddo continues to invest and believe in the Eagle Ford Shale. The Eagle Ford is one of the hottest and most diverse unconventional oil plays in the country. With EOG and Chesapeake leading the way, the Eagle Ford will likely become one of the country’s leading fields within a few short years. The most productive counties in the Eagle Ford Shale include Gonzales, Dewitt, Wilson, Karnes, Live Oak, Atascosa, McMullen, La Salle, Frio, Dimmit and Zavala. Recent production in the Eagle Ford has peaked the interest of investors due to high volumes. EOG recently reported an Eagle Ford well with an initial production equal to 3,000 barrels of West Texas Intermediate a day.
Mississippi Lime (Northern Oklahoma/Southern KS)
The Mississppi Lime (also known as the Mississippian) is located in Northern Oklahoma and Southern Kansas. Southwestern and Chesapeake are the primary operators in the Mississippi Lime, where they have leased hundreds of thousands of acres. Experts believe the ultimate recovery from Mississippi Lime wells to be in the 250-500 MBOE depending on location. Most of the Mississippi Lime wells will unitized based on 640-acre sections and the laterals can be up to a mile long.
Why would someone consider selling mineral rights or royalty interests if the production from these wells are so high? Minerals must be treated like an investment. Mineral rights and royalty interests are essentially intangible assets. The only enjoyment you can get out of them is cash. Therefore, if a buyer is willing to pay more than the minerals may be worth, you should strongly consider selling.